Raleigh Real Estate saw a spike in March 2011 for Pending Sales. The graph shows the sales declined but inventory continued to climb. Sales this fall season have fallen off.

Our prediction for December is still sluggish sales with sellers withdrawing their homes from the market til the Spring Market arrives.

We also predict February through June 2012 sales will be robust and strong with housing prices increasing.

If you would like to get a free analysis of home sales in your subdivision, contact a HomeTowne Realtor.

Raleigh Real Estate

By: John Riha

Kitchen remodeling can turn a ho-hum room into your home’s pride and joy. Here are strategies to help your project run smoothly.

A significant portion of kitchen remodeling costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 to $60,000 range recoup about 69% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report.

To make sure you maximize your return, follow these seven smart kitchen remodeling strategies.

1. Establish priorities

The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning your kitchen remodeling project. That way, you won’t be tempted to change your mind during construction, create change orders, and inflate construction costs. Here are planning points to cover:

• Cooking traffic patterns: A walkway through the kitchen should be at least 36 inches wide. Work aisles should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
• Child safety: Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the proper height—3 inches below the shoulder of the primary user but not more than 54 inches from the floor.
• Outside access: If you want easy access to entertaining areas, such as a deck or patio, factor a new exterior door into your plans.

A professional designer can simplify your kitchen remodel. Pros help make style decisions, foresee potential problems, and schedule contractors. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the same footprint

No matter the size and scope of your kitchen remodel, you can protect your budget by maintaining the same footprint: Keep the walls, locate new plumbing fixtures near existing plumbing pipes, and forget bump-outs.

Not only will you save on demolition and reconstruction costs, you’ll cut the amount of dust and debris your project generates.

3. Get real about appliances

It’s easy to get carried away during your kitchen remodeling project. A six-burner commercial-grade range and luxury-brand refrigerator may make eye-catching centerpieces, but they may not fit your cooking needs or lifestyle.

High-priced appliances are worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and www.amazon.com, and resources such as Consumer Reports.

4. Light your way

Good kitchen lighting helps you work safely and efficiently.

Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate cleanup and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.

Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Pair dimmer switches with ambient lighting to control intensity and mood.

5. Be quality conscious

Functionality and durability should be top priorities during kitchen remodeling. Resist low-quality bargains, and choose products that combine low maintenance with long warranty periods. Solid-surface countertops, for instance, may cost a little more, but with the proper care, they’ll look great for a long time.

If you’re planning on moving soon, products with substantial warranties are a selling advantage.

“Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home.”

6. Add storage, not space

Here’s how you can add storage without bumping out walls:

• Install cabinets that reach the ceiling: They may cost more–and you might need a stepladder–but you’ll gain valuable storage space for Christmas platters and other once-a-year items. In addition, you won’t have to dust cabinet tops.
• Hang it up: Mount small shelving units on unused wall areas and inside cabinet doors; hang stock pots and large skillets on a ceiling-mounted rack; and add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate early and often

Establishing a good rapport with your project manager or construction team is essential for staying on budget. To keep the sweetness in your project:

• Drop by the project during work hours: Your presence broadcasts your commitment to quality.
• Establish a communication routine: Hang a message board on site where you and the project manager can leave daily communiqués. Give your email address and cell phone number to subs and team leaders.
• Set house rules: Be clear about smoking, boom box noise levels, available bathrooms, and appropriate parking.

HomeTowne Raleigh Realtors help Sellers know how to make improvements that bring the most money when selling in today’s market.

Short Sales in Raleigh NC

A short sale is a term that was virtually unknown a decade ago, but which is now part of every real estate broker’s vocabulary.  Basically, a short sale is a sale of mortgaged real property where the proceeds from the sale are insufficient to pay in full the seller’s outstanding mortgage.  Because the seller lacks the financial resources to transfer a marketable title, the seller’s lender must consent to the sale and agree to voluntary release the liens.

This is different from a foreclosure.  In a foreclosure, sale proceeds are applied to the liens in order of when they were recorded.  If there is no money left to pay off additional liens, the lienholders do not get any proceeds.  However, in a short sale, it is voluntary so the other lienholders also need to give their approval in order to sell the property.

If you are trying to buy a home via a short sale, beware of outstanding property tax and special assessment liens since they need to be paid off along with the liens.

As of Spring 2011, it was estimated that, nationally, 27% of current property owners owe more on their house than the property is worth.  One out of every four sellers will find themselves in a short sale situation.

RealtyTrac reports that there were more than one million foreclosures nationally in 2010 and 1.2 million are projected in 2011.  According to the National Association of Realtors, 40% of residential purchases nationally in March 2011 were either short sales or foreclosed properties.

According to North Carolina Association of Realtors, NC is faring better than any states; foreclosures decreased by 27% during the first quarter of 2011 compared to the last quarter of 2010, whereas nationally the rates decreased only 15%.

If a potential short sale situation exists, must a real estate broker disclose this fact?  Yes!  The fact that the owner is unable to convey marketable title without the express consent of the lienholder is a material fact that must be disclosed.

Must a seller disclose anything to a potential buyer?  No!  Caveat Emptor is alive and well in North Carolina.  A seller selling their own home does not have to disclose a short sale situation.  Will it become apparent at some point in the transaction?  Absolutely, and it may derail the transaction, if the buyer was not aware of this fact prior to making an offer.

What about a seller who has a pre-payment penalty that was not discovered until closing. If the listing agent didn’t gather enough information when they took the listing to determine if the seller has a pre-payment penalty clause in their mortgage, the deal can go south when the seller doesn’t have enough proceeds to cover the penalty.

Just a few years ago agents were focused on the buyer being able to obtain a mortgage in order to close a sale.  Nowadays, the sellers also are scrutinized to make sure they have enough proceeds to be able to close.

Using a competent Raleigh real estate broker who understands all these intricacies will have you a lot of heartache as you proceed to a closing.

Test for Radon when buying a Raleigh Home

Radon is a naturally occurring, radioactive gas that can enter the buildings through holes and cracks in foundations. You can’t see, smell or taste it, but it’s the second leading cause of lung cancer in the U.S.  It is being found more in Raleigh North Carolina lately.

According to the Environmental Protection Agency (EPA), radon causes about 21, 000 fatal cases of lung cancer each year. Also, about 15 out of every 1,000 nonsmokers exposed to radon levels twice the EPA’s recommended action level will develop lung cancer.

This carcinogen is easily overlooked not only because it’s imperceptible, but because people are typically exposed to it where they feel safest – at home. The EPA estimates one in 15 homes in the U.S. has radon levels higher than tolerable. The U.S. Surgeon General recommends that all homes be tested for radon.

The good news? Radon problems are easy and relatively affordable for property owners to fix. In dealing with radon, awareness is key.

Radon Testing is only $145 and you will have the results the day we pick up the testing machine.  Radon has been found in a lot of the local subdivisions.

Information provided by Top 2 Bottom Inspections Inc, Talton Earp, www.top2bottominspections.com, 919-631-1805

Raleigh Homes for Sale with Pools

Not every home buyer is interested in having their own in-ground pool.  Some homeowners wish to live in Pool Communities.  But if your family is the “outdoorsy” type then maybe having your own pool is a good real estate move.

The National Association of Realtors says an in-ground pool adds about 7.7% more in value to the home’s market value.

There is a growing segment of baby boomers who pass up buying a vacation home to invest in their own back-yard paradise. They install complete pool systems boasting waterfalls, hot tubs, climbing walls and extensive landscaping.

•    Many people believe pools increase the aesthetic value of their yard.
•    People who host a lot of parties utilize their pools as an entertainment center, and kids love pools.
•    Pools provide an easy way to instantly cool down on hot days.
•    Some people use swimming pools exclusively for in-water exercises and say pools add health benefits for them.
•    Swimming pools can bring added value at resale, especially in hot climates.

Raleigh Real Estate with In-Ground Pools

What to look for when buying a home with a pool

If the pool is open, some home inspection services will check both structural and mechanical aspects as part of their pre-purchase service. If your home inspector doesn’t have the expertise, ask a pool inspector to come and have a look.   Although this can be more difficult in the fall and winter especially if there’s a cover or the pool is empty.

In addition to an inspection, here are a few more questions to ask and things to look for:
•    Ask who installed the pool and who has been looking after it. Your realtor should know whether the pool company is reputable.
•    Imagine what the backyard will look like in summer, or ask to see photos. Make sure it gets adequate amounts of sun and shade, and check for overhanging trees that will drop leaves in the pool.  Check that the lights work.
•    Ask for a written assurance from the owners that all pool equipment works.  Pool equipment and plumbing can be very expensive to replace. The pool or home inspector will check them to make sure they’re working properly and have been adequately maintained.
•    If there are signs of repair, ask what happened. If it’s a vinyl-lined pool, look for tears. Stains may be merely an aesthetic concern, but they could also mean a problem lurking.
•    If there are no obvious tears or cracks, look for water-saturated soil in the area around the pool, pump or plumbing
•    The water should be crystal clear. If it isn’t, ask why.
•    Review the operating costs. For an average 12-by-24-foot pool, the pump shouldn’t cost much more than $40 a month to run. The heating costs shouldn’t exceed $100 a month. And the chemicals should be approximately $400 a season. If costs are higher, it could be an indication that the equipment will need to be replaced soon.

Search all homes in the Raleigh Real Estate area with pools

Raleigh Home with Mold problem

September has been declared Mold Awareness Month by the US Environmental Protection Agency (EPA).  It was designed for homeowners to evaluate the possibility of mold growth in their Raleigh home under normal or emergency situations.

Mold is a microscopic organism that is found everywhere and serves a helpful purpose in nature; however, indoors mold can cause eye irritation, congestion, and respiratory problems.  This indoor problem is also very expensive to fix and is estimated to cost insurers more than $2.5 billion a year.

Studies by Harvard University show between 40 to 50% of homes have moisture and mold problems serious enough to significantly increase respiratory symptoms.

In a Reader’s Digest poll, mold was ranked the 2nd greatest concern for homeowners, more threatening than lead paint and pesticides.  According to the EPA, the average home can be 2 to 5 times more polluted than the air outside.  They estimate Americans spend approximately 90% of their time indoors.

For better indoor air quality, the most important thing homeowners can do is control indoor moisture and humidity.  The trick is to find the right balance.  50% or lower relative humidity is the magic number for optimal comfort.

There are toxic and non-toxic fungi indoors, with a number of those spores neutral from a health perspective and some that are beneficial.  Homeowners develop issues with mold when it becomes active and releases spores into the air.  If those spores are not captured by your air filter, they will be inhaled and, like ragweed, can cause an allergic reaction.  Here are some tips homeowners can take to prevent the “toxic” or at least allergenic fungi.

Experts say that simple home maintenance is the best way to prevent mold from presenting itself in the first place.  When excess moisture accumulates indoors and air circulation is reduced, mold problem areas will develop.

Tips on keep mold at bay:

• Fix water leaks as soon as they are detected.
• Keep hard surface floors, counters, and upholstery clean with detergent and dry completely.
• Take steps to prevent condensation from developing around windows, walls, pipes, and floors by adding fiberglass insultation.
• Use dehumidifiers and air conditioners especially in hot, humid climates.
• Use Mold Resistant products.
• Use exhaust fans in bathroom and kitchens to remove moisture to the outside.

Air Conditioning

According to the EPA, the only way to control indoor mold is to control moisture levels in a home.  Ventilation and air flow is a critical component in preventing moisture building up, and the best way to control moisture is to insure your AC system filter is changed on a regular basis, every 2-3 months.

Leaving dirty air filters in your heating and cooling system will reduce air flow, resulting in the blower motor to work harder and longer and more energy consumption and an increase in moisture content in your home’s air.

Use quality air filters to help reduce mold in your home.

1.    Pleated panel with a metal support grid – This extends the surface area of the filter and allows more contaminants to be captured, resulting in cleaner, fresher air quality. Look for a rust resistant galvanized-dipped metal support that follows the pleats of the filter – this ensure the filter will not buckle when the AC system turns on and off. You also want the filter to be made of high performance synthetic filter media, which will trap moisture as it flows through the air filter, while at the same time provide the right balance of air flow efficiency and filtration.
2.    Double-wall framed with moisture-resistant cardboard for structural support – This insures the integrity of the air filter as a critical part of your ac system. Like the metal support grid, this adds another level of support. In addition, the moisture resistant cardboard keeps the walls from getting “wet” as moisture presents in the air, which will prevent the air filter itself from “buckling” (which could lead to costly repairs).
3.    MERV 11 Rating: MERV stands for Minimum Efficiency Reporting Value and is a standard for rating the effectiveness of an air filter in removing airborne particulate contaminants. The higher the number the smaller the particles the filter can capture. Don’t be fooled, as some major brand air filter companies have decided in recent years to come up with their own rating system to hide substandard design, filtration, and efficiency. The MERV11 rating is recommended by the EPA to provide the necessary air filtration for good indoor air quality.

Carpeting

• After carpet cleaning, place air movers around the room to help carpets dry faster.
• Turn up HVAC systems as soon as carpet cleaning begins and keep them at elevated levels for two to four hours after cleaning.
• Don’t walk on carpet because this can soil the carpet and it is these organic soils that soon become welcome signs for mold colonies.
• Pay special attention to carpet on concrete floors.  Carpet can absorb moisture and serve as a place for mold to grow.
• Do not install carpeting in areas where there may be a perpetual moisture problem in the home.

Raleigh Home - Selling Your Raleigh Home

As just one of the many concerns of being a homeowner, mold should be at the top of the maintenance list.  This often undiscovered danger is usually kept in check with some important, yet easy maintenance tips.   Waiting until you are ready to sell your home will only cost you more money and heartache when a buyer discovers this problem.

Source: http://www.epa.gov/moldresources.html

Raleigh Real Estate

High inventories of homes for sale have plagued many markets, but in a
recent analysis of metro areas, inventories were found to be shrinking
sharply during the second quarter, The Wall Street Journal reports.

About 2.34 million homes were listed for sale on the multiple-listing
service by the end of June, the lowest level for that time of year since
at least 2007, according to Realtor.com. What s more, some inventory
levels even reached their lowest levels since the housing crisis began
five years ago, which has prompted some markets to even say their facing
a shortage of homes on the market.

While a drop in inventories can often signal more demand — and
ultimately a boost to home prices — some analysts aren t so sure this
signals a complete turnaround for the real estate market quite yet.

While sales are picking up in some cities, analysts say the sharp
decline in inventory also reflects the slow pace at which banks are
processing foreclosures, The Wall Street Journal reports. (The number
of homes in foreclosure — a backlog of 2.1 million — is near a high.)
Also, some sellers are taking their homes off the market due to low
offers and waiting until they put it back on the market.

In its analysis, The Wall Street Journal found that of the 28 major
metro areas evaluated inventory levels had dropped in all 28 — except
for three. What s more, they found that inventories had dropped by
double digits in 16 of those markets during the second quarter when
compared to a year ago. For example, inventories dropped in Miami by 43
percent from a year ago; 30 percent in Washington, D.C.; and more than
20 percent in cities like Charlotte, N.C., Seattle, and San Francisco.

“We’re in a shortage situation,” Brett Barry, a real estate professional
in Phoenix, told The Wall Street Journal. Phoenix has a four-month
supply of homes listed for sale at its current pace. “It’s a very
artificial, ‘Twilight Zone’ kind of feeling, because we know there’s a
lot of homes out there.”

Source: Home Listings Fall But Woes Persist, The Wall Street Journal

Home Staging Service by HomeTowne Realty

Prepping a Home for Sale: Simple Staging Tips for Inside and Out

Before you show your home to any potential buyer, you want to make sure the staging is perfect. Follow these general tips and your home will look better than the competition.

FOR THE INSIDE
Clear all unnecessary objects from furniture throughout the house. Keep accessories and objects on the furniture restricted to groups of 1, 3, or 5 items. In general, a de-cluttered home helps the buyer mentally move in with their own things. Rearrange or remove some of the furniture in your home, if necessary. Many times home owners have too much furniture in a room. When it comes to selling your home, thin out overcrowded rooms to make the rooms appear larger.

Clear all unnecessary objects from the kitchen countertops. If it hasn’t been used for three months put it away! Clear refrigerator fronts of messages, magnets, pictures, etc. In the bathroom, remove any unnecessary items from the countertops, tub, shower stall, and commode top.

Keep only the most necessary cosmetics, brushes, perfumes, etc., in one small group on the counter. Coordinate towels in one or two colors only. Take down, reduce, or rearrange pictures and objects on walls. Patch and paint all walls, if necessary.

Review the house interior, room by room, and
1. Paint any room needing paint.
2. Clean carpet and draperies that need it.
3. Clean windows.

Pack up and store. If you need room to store extra possessions, get a storage unit.

Leave on certain lights during the day . During showings turn on ALL lights and lamps. Set a background tune. Play light FM music every day in the house, for all viewings.

FOR THE OUTSIDE
Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., to the garage or, if applicable, take them to the dump.

Check gutters and roof for dry rot and moss. Make sure they are swept and cleaned.

Examine all plants. Plants are like children they grow so fast. Prune bushes and trees.

Keep plants from blocking windows: You can t sell a house if you can t see it!

Remove any dead plants, weed all planting areas, and put down fresh mulching material.

Keep your lawn freshly cut, edged, and fertilized during the growing season.

Clear patios or decks of all small items, such as little planters, flower pots, charcoal, barbeques, toys, etc.

Check the condition of the paint on your home, especially the trim and the front door.

The first impression, or curb appeal, is very important.

IN GENERAL
Try to look at your house through a buyer s eyes, as though you’ve never seen it before. This exercise will help you see what needs to be done. Any time and money invested on these items will usually bring you the return of more money and a quicker sale.

By Barb Schwarz, Stagedhomes.com